HOW DIVERGENCE ANTICIPATES TREND CHANGES

There are several types of divergence we can track between data feeds.

SPOOS & VOLUME
PREM & ZSCORE

SPOOS & VOLUME

Short Trades

Here we compare the highs of the spoos to the highs of the Volume. If we get a higher high on the spoos but a lower high on the VOL it implies weakness and possible short trade.

Long Trades

Here we compare the lows of the spoos to the lows of the Volume. If we get a lower low on the spoos but a higher low on the VOL it implies strength and possible long trade.

PREM & ZSCORE

Short Trades

Here we compare the highs of the spoos with the highs of the Zscore on the PREM. If we get a higher high on the spoos but a lower high on the Zscore of the PREM it implies weakness and possible short trade.

Long Trades

Here we compare the lows of the spoos with the lows of the Zscore on the PREM. If we get a lower low on the spoos but a higher low on the Zscore of the PREM it implies strength and possible long trade.